Executive Management Team
Ron Genova – Interim CEO & Board of Advisors
¤ ¤ ¤ ¤ ¤ 30 years of success developing profitable high-tech products Vice-President of JDS Uniphase Telecom Optical Modules President Polymer Photonics / Optical CrossLinks Senior management roles in Bell Labs, AT&T, Lucent Technologies Senior Member of IEEE; Holds several patents
Frederick J. Goetz, Jr. – President & Chairman
¤ Co-founded PSI-Tec with his father, Frederick J. Goetz, Sr. ¤ Responsible for PSI-Tec : Laboratory operations Process development of novel molecular structures Molecular orbital and electrostatic simulation software Quantum mechanical interpretation ¤ Advanced Light Source (ALS) particle accelerator work at: Lawrence Berkeley Laboratory (LBL) Army Research Laboratory (ARL) Aberdeen Proving Grounds
Take Away Highlights
Pre-revenue company engaged in revolutionary Research & Development of Electro-Optic polymers, material systems and components Founded in 1991; Incorporated 1994; Public Market 2004 (PTHO.PK); Oct.’06 name change from PSI-TEC to Third-Order Nanotechnologies, Inc. (TDON.PK)
(Covers technology evolution into optical processing – the third order effect)
Emerging from “Stealth Mode” with successful demonstration of the world’s FIRST stable, high performance Electro-Optic polymer molecule materials Initiating commercialization launch of our DISRUPTIVE technology in 2007.
(Early focus will target >$1B 40Gb-100Gb modulator market & forming strategic alliances)
SAFE HARBOR STATEMENT
Certain statements in this presentation constitute forward-looking statements forwardwithin the meaning of Section 27A of the Securities Act of 1934. “Forward-looking” statements are all statements made by us, other than Forward- looking” those dealing specifically with historical matters and any statements we statements make about the conduct of our business or finances up to this moment. All moment. other statements made by us are forward-looking statements which include forwardany information provided on future business operations and guidance guidance regarding our future financial performance. Actual results might differ materially from those projected in the forwardthe forwardlooking statements. Factors that could cause actual results to materially materially differ from those in the forward-looking statements are discussed in the forwardCompany’s Securities and Exchange Commission filings. Company’
Silicon was the material that defined the 20th Century.
Our Electro-Optic polymers will be the material that defines the 21st Century.
Key was resolving EO polymer’s stability issues
Strategic Alliance Approach to Product Development
Internal Focus: Information Movement/Management Markets
Targeting $1B+/Year Market Opportunities -
Hi-Speed Optical Interconnects, Modulators, Filters
Semiconductor and Circuit Board Applications On-chip & Chip-to-Chip Interconnect 40Gbs to 160Gbs Modulators (w/Low V <0.8v) Low cost FTTH xPON Modulators Tunable Fabry-Perot Etalon Filters
Transponder/TCVR Modules (“upstream products”)
- Increases Bandwidth & Transmission Capacity - Enables PSTN Migration to Internet Protocol - Strong 3rd Order NLO Effect - Uses Light to Control Light - AOIC (All Optical Integrated Circuits) - AOP (Analog Optical Processors)
All Optical Information Movement & Management
Plastic “IC chips” and Microprocessors
- “Analog optical processors represent a 50,000 times improvement over conventional digital processors”
- Terry Turpin, Sr. V.P. & Chief Scientist, Essex Corp., at the Gilder/Forbes , Sept.26-28 2005, Lake Tahoe
¢ ¢ §¨ §¨ ¨ ¨ ¢ ¢ §¨ §¨ ¨ ¨ ¡ ¡ ¡ ¡ £¤ £¤ ¥ ¥ ¡ ¡ ¡ ¡ £¤ £¤ ¥ ¥ ¦ ¦ ¦ ¦ © © © ©
Bandwidth Growth Cycle is “Alive & Well” !
Material Advancements Drive New Technologies - New Technologies Improve Economics
- Reduces “Cost per Managed Bit” - More Bandwidth at Lower Cost - Creates New Value-Added IT Services -
Demand for New Services Fuels Deployment
Always connected / “Follow-me” Small Office/Home Office (SOHO) Telecommuting / Teleconferencing Entertainment / Lifestyle - Videocasting - BLOGs - Mobile TV, Movies & Music - Shared Gaming
¤ Driving the Conversion of Public Switched Phone Networks to Internet Protocol (IP)
Fueling the Need for New Technologies to Support More Bandwidth at Lower Cost
Viewpoint from an Industry Leader
John Chambers - CEO
May 2, 2006 issue
"Network IT (& Telecom) is not only back but it' going to change the way we s live, work, learn and play." Time and again Chambers repeated the mantra “anytime, any place, any screen, any device, any network”. "In the past we associated a given device with a given type of content," Chambers said. "Now multiple devices and multiple screens are sharing the same experience … and that will lead to a huge productivity (and bandwidth demand) increase."
Information Market Drivers Remain Intact
Internet’s World Wide Web:
Bandwidth demand increasing 50% to 100% per year Bandwidth cost falling 25% to 40% per year
685,000,000 Users Online Daily & Growing Backbone Traffic Now Exceeds 1Tb/s
300,000,000+ km of Installed Fiber-optics Mass Deployment of FTTH & SOHO in US Backbone Migrating from 10Gb/s 40Gb/s 10GbE (Ethernet) Evolving to 100GbE Conversion of PSTN to IP Appears Inevitable
Information Traffic Continues to Grow
Historical Internet Traffic Growth
Backbone Traffic (Kb/s)
2.5Gb/s 1.7Gb/s 622Mb/s 150Mb/s 50Mb/s
Sources: FCC, Dell Oro, AT&T Research, RHK,
Merrill Lynch, JDS Uniphase, CIBC
Predominant Network Speed
Market Forecast for 40Gb/s Polymer Modulators
Source: WinterGreen Research, Inc. ©2005
Cumulative revenue over next 6 years approaches $1B
Opportunities for 100Gb/s Polymer Modulators
[July 25, 2006] The Institute of Electrical and Electronic Engineers (IEEE) 802.3 Ethernet standards working group formed the Higher Speed Study Group (HSSG) to evaluate the requirements for the next generation of Ethernet technology (100GbE). It was observed that a cost effective polymer based modulator suitable for 100GbE Datacom could easily eclipse Telecom’s $500M+ market opportunities within 5 years.
Verizon has stated publicly it will need to implement 100Gb/s in its networks by 2009 to satisfy demand for video distribution … and it could well be a 100GbE IP network by then.
The Great Promise of Electro-Optic Polymers …
… communications & computation via photons, not electrons
Smaller , Faster, Cheaper, & Less Power
• • • • • • •
High speed Interconnect & Optical Computing Internet (Backbone, Routers, Switches & Servers) Telecommunications & Datacom Networks Entertainment (CATV / Broadband / Wireless) Life Sciences, Medical Diagnostics and Imaging Military, Defense, Aerospace, Satellite Reconnaissance Optical Signal Processing / Computing (“Plastic PC”)
Anatomy of Our Material Advancement
Classic Quote #1
The definition of insanity is continuing to do the same things … in the same ways …
and expecting different results !
Using industry standard Bond Length Alternation theories, an E-O active polymer is ‘stretched’ ( -bridge conduction) increasing its performance but consequently also increasing its instabilities. “The more you do to make the polymer better, the worse it gets.”
Anatomy of Our Material Advancement
Classic Quote #2
The only way to predict the future …
… is to create it !
Instead of taking an E-O active polymer and trying to make it stable, we took a fundamentally stable polymer and made it E-O active. The result is called Cyclic Surface Conduction (CSC) theory and has allowed ThirdOrder Nanotechnologies to demonstrate stable polymers having >650% better performance than the best competitive BLA materials (eg. CLD, FTC).
A Tale of Two Polymers …
(The Foundation of Stability)
CLD/FTC type molecules:
“ Best in class to date” A
Long atomic chains improve EO performance … but with temperature & photo instability penalties
Rigid, ring-locked atomic structure produces a stable molecule with excellent EO performance
A D D
Requires expensive, bulky packaging to withstand light, temperature, and moisture
Readily withstands light, temperature, and moisture without expensive packaging
Next Six Months Plan
Dec06 1Q07 2Q07
Evaluations: Waveguides FP Etalon Mod. Phase Modulator On-Fiber Mod. Norwood MZ Mod. Photon-X Mod.
Design timeline (excludes product qualification time)
T-O positioned to facilitate 40Gb/s telecom modulator prototype samples to key customers
Commercial Ready Material System(s) and Films Form 10-SB Registration Statement to SEC
Fully reporting & listing upgraded to:
Development agreement underway with:
Product Development Roadmap
40Gb Telecom Modulator w/Driver & Controller
OC-768 40Gb/s Transponder
Optical Chips: Phase Mod. Etalon Filter FP Resonator
100GbE Datacom Modulator w/Driver & Controller
Optical interconnects: Backplane, C2C, OIC
160GHz Milspec Modulator w/Driver & Controller OPTICAL PROCESSOR
Design timeline (excludes product qualification time)
October 21, 2006
• • • • • • • •
Revolutionary advancement emerging from 15 years in development Radical departure from conventional (BLA) polymer science Successfully demonstrated (June’06) as >650% better than “best” Independently verified by prestigious University of Arizona Targeting Information Industries (Voice, Data, Video/Entertainment) Initial market (high bandwidth modulators) >$1B/yr within 5-7 years Strategic Alliance / Partnering dialogue underway with industry leaders Achieving industry recognition:
A New Generation of EO Materials ...
Addressing a World of Opportunity !
Third-Order Nanotechnologies, Inc. (TDON.PK)